Credit Card Deals 2008
Following festive spending some consumers can find that they've spent a bit more than they anticipated. One way to keep your bills down is to switch to a cheaper credit card, especially one that offers a period of zero percent interest. Of course, in these days of tightened credit you will need a spotless credit record to get such a card.
Points to watch on these cards are the period of zero percent interest, as well as the transfer fee and minimum payment. It is best not to make purchases on a balance transfer card as payments go towards the transferred balance first, leaving you to pay interest on your purchases as long as you have any balance remaining.
Here are some of the best zero percent balance transfer cards.
The Virgin Money MasterCard has an interest-free period of 15 months on balance transfers, with a fee of 2.98% (minimum £3). The standard interest rate on purchases is 15.9%, and the interest-free period on purchases can be as long as 50 days.
The Mint MasterCard's zero percent interest period currently runs to 1 March 2009 on balance transfers for a fee of 2.9% (minimum £5). The standard interest rate on purchases is 12.9%, and the interest-free period on purchases can be as long as 56 days.
The Egg Visa card has an interest-free period running until 1 April 2009 on balance transfers, with a fee of 3%. The standard interest rate on purchases is higher 16.9%, and the interest-free period on purchases is shorter at a maximum 45 days.
NatWest's MasterCard and Visa both have an interest-free period of 13 months on balance transfers, with a transfer fee of 2.9% (minimum £5). The standard interest rate on purchases is 12.9%, and the interest-free period on purchases can be as long as 56 days.
If you pay off the outstanding balance on your credit card every month, then the interest rate need not bother you, and you can look for a card that offers some other kind of perk. Cards with added benefits can be useful if you are intending to use a credit card in the January sales.
The American Express Platinum Moneyback card has an introductory interest rate on cashback of 5% for three months on up to £4,000 for a year. Beyond that period the standard rate on cashback is 0.5% for up to £3,500, then 1% on amounts between £3,501 and £10,000, and 1.5% for spending beyond £10,000. The standard interest rate on purchases is 18.9%, and the interest-free period on purchases can be as long as 56 days.
The Barclaycard Platinum Cashback card has a standard rate on cashback of 0.5%, with 2% cashback on spending at supermarkets and for petrol. The standard interest rate on purchases is 14.9%, and the interest-free period on purchases can be as long as 56 days.
The Capital One Bank Cashback card has an introductory interest rate on cashback of 4% for three months with no limit. Beyond that period the standard rate on cashback is a straightforward 1%. This may be useful if you are intending to use a credit card in the January sales. The standard interest rate on purchases is 15.9%, and the interest-free period on purchases can be as long as 45 days.
The Egg Money MasterCard has a standard rate on cashback of 1% with a minimum cashback payment of £5. The standard interest rate on purchases is only 7.9% (but since you’re looking at these cards because you regularly pay off your bill in full, this should entice you), and the interest-free period on purchases can be as long as 50 days.
The Leeds Building Society MasterCard has a standard rate on cashback of 0.5%. The standard interest rate on purchases is 0% for six months, then its is 17.9% and the interest-free period on purchases can be as long as 58 days.
If you feel your credit history is preventing you from obtaining a credit card, especially if you are suffering from poor credit, there are options in the credit card market today. These cards will have higher than average interest and should only be used to re-establish your credit and be repaid in a timely manner.
Examples of such offers include:
Aqua MasterCard - No annual fee; 29.9% Typical APR
Capital One Classic Visa - No annual fee; 34.9% Typical APR
Vanquis Visa - Up to 56 days no interest on purchases; 39.9% APR
Published on January 9, 2008
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